In commercial real estate and brokerage, the exclusive listings that you convert and create will help you build market share. Open listings are generally a waste of time and any results that you get from the open listing process will be a process of luck more than anything else.
In some markets and with some agents, it is common to hear that the open listing process is the only way to build listing stock. The problem is quite common when it comes to industrial property and with the newer brokerages or agents. Those agents are quite generic in quality of service and marketing activity. They have no point of difference to help their listing process and marketing plan.
Your conversions to exclusive listings will elevate when you are working as a property specialist, and are regarded as the local expert to solve the client’s property problem. It is very difficult for a client or a prospect to walk away from or ignore the services of a top agent.
Generic agents take on open listings just to get the stock; specialized agents take on exclusive listings only. If you want to improve your market share, you will need to practice your processes when it comes to pitching for an exclusive listing. You will need more exclusive listings.
To improve your conversions for exclusive listings, here are some ideas:
To convert more of these listings, you do need to feed your contact pipeline with a systematic prospecting process. Every day connect with new people that you have not spoken to before. Over time, repeating the connection process with the same people will allow you to convert more meetings and make more presentations. On average, it takes about three or four telephone calls to get a meeting with some property owners and property investors. Establish your call contact system, and implement it every day so that your pipeline of opportunity is growing.
There are two reasons why you will get an exclusive listing. The first will be that you are regarded as an expert in the local area, and the second will be that you are regarded as a marketing specialist. It directly follows that you will need to build your brand and prospect model accordingly. Every pitch and proposal that you make should be structured with those two issues in mind.
A good quality property will always create more enquiries from your marketing efforts. Top agents will usually focus on the best properties and the best clients. Those top agents walk away from poor quality listings, open listings, and unrealistic clients. Protect your time and your agency procedures as part of that process. Don’t take on a listing that you regard as unnecessarily difficult and unrealistically priced.
As mentioned earlier, the exclusive listing process will help take you to the top of your market with a commanding market share. Practice your pitch and your proposals accordingly. Role-play your presentations in each sales meeting so that both you and the team can provide special services and solutions for the clients that you serve.
In commercial real estate you will get a lot of leverage from market intelligence and local property knowledge. This then says that you really do need to know the things that are going on in your real estate zone or listing patch. That may be an entire town or a portion of a city.
At the basic end of ‘market intelligence’ you really must have a good understanding of these things:
Properties currently listed for sale or lease with all agents
Properties being marketed by owners and landlords directly
Businesses seeking to expand or contract in property use or occupation
Time on market for listings today and historically
Selling and leasing seasons of activity
Prices of properties sold
Rentals of properties leased
The key property investors that own the high quality properties
The larger businesses that operate in the area
The levels of enquiry coming into your office for various property types
The types of properties that people are looking for
Property developers that act on new opportunities locally
Solicitors with property related clients
Accountants with clients that may need property help or guidance
Connecting with these people will help you build market share. Over time they will need the help of a specialised agent or broker.
When salespeople new to the industry first start their prospecting, they find that it takes time to meet the right people and create meetings. They struggle and they can feel rejected given that most of the prospects that they talk to will not require property help at that time. That rejection is just fine and quite normal; the cycle of commercial real estate activity is long and takes time to evolve.
Do your research. Connect with the right people every day and stay with them for the long term. Relevance and consistency in prospecting are the keys to winning new commercial real estate business.
You can use market information for leverage. Here are some ideas on that:
The solicitors and accountants in your area will have clients that need property help or may own the larger high quality properties. It takes time to win the trust of these professionals because they will want to protect their clients from any ‘unprofessional’ agents and brokers. You look at these solicitors and accountants as targets for the long term value that they can give you. It is likely that they will firstly ‘test’ you on a difficult project or client. When you show your real skill and knowledge, the extended business will come your way.
The properties listed with other agents will give you a reason to talk to other property owners in the same street. Some of them may wish to compete with the nearby listing.
Gather your market information and then use it to the best of your ability. Get leverage into your sales and leasing territory.
The process of advertising a commercial property for sale or for lease may have changed somewhat over recent years, but the need to promote the property remains as important as ever before.
Every property listing is a great excuse to talk to local business owners and property investors; in this way you will get more market intelligence and opportunities to work on as a commercial real estate agent.
Decisions and Strategies
Before you start to advertise a property, a few decisions and strategies should be set. In this way you can optimise the enquiry that you create for the commercial or retail property. Here is a checklist of some of the main things and ideas that you can use in establishing the advertising program and campaign:
Inspect the property comprehensively to understand the factors of presentation that should be addressed prior to any inspections. If something doesn’t look good then it should be removed or fixed; we have limited qualified enquiry today for most properties that are taken to market, and every enquiry should be optimised. You do not need ‘hurdles’ when it comes to property marketing.
If the property is already tenanted and therefore to be sold as an investment, you will need to comprehensively review the lease documentation to see how it will impact the marketing efforts and the target audience that you wish to attract. It may also be that you will need to address any weaknesses in the lease and occupancy documents (such as rent reviews, options, and vacancies) prior to marketing.
Determine the 4 things that the property clearly offers a buyer or tenant. Will these things influence the enquiry rate that you could create? If so, they will need to feature prominently in the advertising copy.
Get some professionally prepared digital photographs of the property that can be used in the marketing effort. It is remarkable just how these photographs will help you create enquiry as the property is advertised. Most agents do not take photographs of sufficient quality to help generate property enquiry. Ensure that your vendor is encouraged to have a portfolio of professional images taken of the property before the campaign commences.
What will be the best timing of the property promotion? In saying that, have due regard for seasonal and business pressures that may impact your target audience; on that basis, choose the right advertising material and how it is initiated into the market.
Some marketing efforts will be more successful than others. For this reason you should have a process of ‘test and measure’ when it comes to monitoring all of the marketing for a particular property. If something is not working, change it before you waste too much precious marketing effort and funds.
It pays to have all drafted advertising and layouts checked by others in your business team before the material is lodged with the respective media. Get these people to tell you of any weaknesses in message and presentation.
When you take the right steps in preparing your marketing, you will find that the outcomes from each property promotion are more genuine and specific to the property. In this way you can optimise the outcomes that you require.
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